A major banking system crash has fueled concerns about the European Central Bank’s (ECB) plans for a digital euro.
System Failure Raises Eyebrows
Last month, the ECB’s TARGET2 (T2) payment system went down for several hours, halting payments across the EU. This incident has prompted some members of the European Parliament to question the ECB’s readiness to launch a digital euro.
MEPs Express Concerns
Markus Ferber, a German MEP, called the outage a “blow to the ECB’s credibility,” questioning how the ECB can manage a digital euro if it can’t maintain its current operations. He voiced concerns that citizens will have legitimate doubts about the ECB’s capabilities.
The Push for a Digital Euro
The ECB has been pushing for a digital euro partly to counter the influence of private stablecoins, particularly in light of actions taken by the US government. ECB board member Piero Cipollone previously stated that the US government’s focus on crypto could drive people away from traditional banks, highlighting the need for a digital euro to maintain competitiveness and banking relevance.
Disclaimer
Please note that this information is for general knowledge and does not constitute financial advice. Always conduct thorough research before making any investment decisions.
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